Published on 2 May 2024 on Zacks via Yahoo Finance

Carlyle (CG) Q1 Earnings Beat Estimates, Stock Falls 8.6%

The Carlyle Group Inc. CG reported first-quarter 2024 post-tax distributable earnings per share of $1.01, which surpassed the Zacks Consensus Estimate of 92 cents. The bottom line compared favorably with 63 cents reported in the year-ago quarter.Results benefited from an increase in segment fee revenues. Further, a rise in assets under management (AUM) balance and realized performance revenues acted as tailwinds. However, higher expenses were an undermining factor. The company’s shares lost 8.6% following the release of its first-quarter 2024 results.Net income attributable to Carlyle was $65.5 million, down 34.9% from the prior-year quarter.

Revenues & Expenses Rise

Segmental revenues were $1.02 billion in the quarter under review, which jumped 35.6% from the year-ago quarter's level. The top line missed the Zacks Consensus Estimate of $1.03 billion.Total segment fee revenues grew 3.6% year over year to $571.4 million. A rise in fund management fees, transaction and portfolio advisory fees, as well as fee related performance revenues, drove the increase. We had projected the metric to be $651.5 million.Realized performance revenues improved significantly to $397.8 million from $165.1 million reported in the prior-year quarter. Our estimate for the metric was pegged at $258.5 million.Total segmental expenses climbed 22.6% to $591.7 million. The increase was due to a rise in total compensation and benefits. Our estimate for the metric was pinned at $569 million.